Hey,
While it doesn't draw as much buzz as the release of "Spider-Man: No Way Home," the release of the 2022 conforming loan limits has sparked a lot of debate. At the end of November, the Federal Housing Finance Agency announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. Additionally, the federal government will now back mortgage loans of nearly $1 million, with the new ceiling loan limit for one-unit properties in most high-cost areas now $970,800.
The latest reaction: One major player in the private-label securitization market sees this as a looming problem brewing in the housing industry. The company argues that "the GSEs could more effectively support their affordable-housing mission with a reduced focus on high-balance loans."
Okay...so no one is surprised that a private company feels this way about the limits. But, how does the FHFA feel about the relationship between the limits and affordable housing?
In a prepared statement, FHFA Acting Director Sandra Thompson said, "Compared to previous years, the 2022 conforming loan limits represent a significant increase due to the historic house-price appreciation over the last year," she said in a prepared statement. "While 95 percent of U.S. counties will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.
"FHFA is actively evaluating the relationship between house price growth and conforming loan limits, particularly as they relate to creating affordable and sustainable homeownership opportunities across all communities."
FWIW: The FHFA just announced how the GSEs did on their 2020 performance goal, and Freddie Mac failed its low-income refinance goal. On this news, Thompson said, "Meeting the housing goals is not optional, and FHFA will continue to work with the Enterprises to ensure they meet their statutory and Conservatorship Scorecard requirements."
- Brena Nath // HW+ Managing Editor
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